Marketing 4.0. Setiawan Iwan

and global companies. Eventually, there will be no company that overly dominates the others. Instead, a company can be more competitive if it can connect with communities of customers and partners for co-creation and with competitors for co-opetition.

      The flow of innovation that was once vertical (from companies to the market) has become horizontal. In the past, companies believed that innovation should come from within; thus, they built a strong research and development infrastructure. Eventually, they realized that the rate of internal innovation was never fast enough for them to be competitive in the ever-changing market. Procter & Gamble (P&G), for example, learned this early in 2000, when its sales from new products flattened. It later transformed its research-and-develop model into a connect-and-develop model. The more horizontal model relies on outside sources for ideas that in turn will be commercialized using internal P&G capabilities. Its rival Unilever has been moving in the same direction by capitalizing on its vast external innovation ecosystem. Today, innovation is horizontal; the market supplies the ideas, and companies commercialize the ideas.